With the investment, Seagate will purchase 40 acres of land with the option to buy another 30 acres at the Malaysian state's Batu Kawan Industrial Park. The land purchase is in line with hard-drive storage manufacturer's business model to support its long-term operations in Penang, said Lim.

He noted that the local manufacturing sector had accounted for almost half of the state's Gross DomestiC Product in the last five years. He added that the government will continue to support the industry, which will further fuel growth in the services sector.

According to the report, the Penang government in March 2014 launched the BPO-ICT Hub, which cost 3.3 billion ringgit (US$1.03 billion), to promote the local services industry.

Seagate's investment follows another deal signed between the Penang Development Corp and Singapore's Temasek Holdings to establish a joint venture to develop the Penang International Technology Park and BPO Prime. Expected to take between 5 and 10 years to complete, the project will sit on a 206-acres land in Batu Kawan and cost 11.3 billion ringgit (US$3.52 billion).

In June, Lim also announced a 1.2 billion ringgit (US$374.3 million) investment from SanDisk to build a flash memory manufacturing plant in Batu Kawan.